I have been quite disappointed with the performance of the authorizing committees of the Commodity Futures Trading Commission (CFTC) after bankruptcy of the introducing broker OptionSellers and the absolving of the clearing firm INT FCStone of any blame.
Anyone who knows anything about the operation of the futures market knows that the integrity of these clearing firms is what makes the markets work. The House and Senate Agriculture Committees have at stake their jurisdiction over this field of law. If they don’t use it they should let other committees have it. Maybe it should go to the committees with oversight responsibility for the SEC.
They should call the current Chairman Heath Tarbert to come before their Committees. The questionable activities took place during the term of his predecessor Chairman Giancarlo, who is now a Washington lawyer and lobbyist.
I know how the CFTC was started because I was the young Senate lawyer who drafted the law to establish the CFTC in 1974. I have the documents to prove it. Unfortunately, I have the documents to prove the huge loss I took when OptionSellers went under in the second week of November 2018.
To me it is inexplicable that a few years before, in 2013, the CFTC fined the clearing firm INT FCStone $1.5 million and forced them to absorb $127 million in losses. This time they allowed this firm to charge innocent investors like me for the losses. I would be happy to testify before the House and Senate Agriculture Committees.
The only Federal agency that has expressed any interest in trying to help me is the FBI, Department of Justice. I received a letter from the Victim Specialist stating that she understood I was a victim of a financial crime. A copy is included in my little book “The Worst Financial Scandals of the Last Twenty Years: From Madoff to the Coverup of the OptionSellers/INT FCStone Scandal”.
This little book is available for $6.99 in print or free as a Kindle book.
Michael R. McLeod